scholarly journals The Study of Monetary Policy Instruments and Implementation Challenge in Laos

2018 ◽  
Vol 10 (2) ◽  
pp. 169
Author(s):  
Maliny Sourigna ◽  
Shuzhen Zhu ◽  
Atsara Chanthavieng
Keyword(s):  
Monetary Policy ◽  
Policy Implementation ◽  
Lao Pdr ◽  
Policy Instruments ◽  
Policy Decision ◽  
Consumer Preference ◽  
Policy Framework ◽  
Open Market ◽  
Market Operation ◽  
Implementation Challenge

The monetary policies have been developed and implemented by the Bank of Lao PDR (BOL). This article presents the monetary policy framework in Laos which includes the policy instruments and implementation mechanism. The author applied the actual implementation and the existing theories to display the Lao monetary tools such as interest rate, open market operation, reserve ratio, exchange rate, credit control, cash flow management and relevant regulations. As well as the policy implementation mechanism has been presented in policy decision, operation department and operation mechanism.The author applies the descriptive analysis on the monetary policy implementation challenge and addressing. They based on monetary policy theories, literature studied, and practical experience from the operation authority. The analysis has found the challenges as The limited of market operation; the dollarization and multiples currencies consumer preference; the challenge in Kip prices, and Kip lending; the foreign capital outflow. Then, the analysis moved forward to the challenge addressing. All of these measures are taken to maintain the efficient management of the monetary system, ensure an effectiveness of the monetary policy implementation in the long-term.

scholarly journals Monetary Policy Its Instruments and Convergence of Its Objectives: Case of Angola 2005/2017

2019 ◽  
Vol 5 (2) ◽  
pp. 161
Author(s):  
Antonio, Pitshu Massaka
Keyword(s):  
Monetary Policy ◽  
Policy Instruments ◽  
Multiple Linear Regression Model ◽  
Economic Thought ◽  
Policy Framework ◽  
Open Market ◽  
New Paradigm ◽  
Keynesian Model ◽  
Market Operation ◽  
Open Market Operation

<p><em>This paper proposes a new paradigm for the analysis of monetary policy, and presents the monetary policy framework in Angola which includes the policy instruments, and implementation mechanism the way between instrument and objective.<strong> </strong>To study the Monetary Policy instruments in Angola based on a multiple linear regression model. Before the model was conceived an analogy was made about the politics and instruments of monetary policy from the classical Keynesian model in the matter, but also less important also to analyze the concrete objective of monetary policy if the authors agree connected with those currents of economic thought. For the estimation of the equation for the monetary aggregate M2 that represents the money supply by the Central Bank in Angola The author applied the current implementation and the existing theories to display the Angola monetary tools such as basic interest rate for monetary policy orientation (tbna), open market operation, Lending Facility, coefficient of required reserve, net international reserves, and the Gross Domestic Product, the reference oil price to brent. Most of the variables present the expected results.</em></p>

Monetary Policy Instruments and Bank Risks in China

2013 ◽  
Vol 4 (2) ◽  
pp. 57-71
Author(s):  
Zhongyuan Geng ◽  
Xue Zhai
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Policy Instruments ◽  
Bank Risk ◽  
Open Market ◽  
Reserve Requirement ◽  
Market Operation ◽  
Open Market Operation ◽  
The Interest Rate ◽  
Bank Risks

The authors use a panel data regression model to examine the effects of main monetary policy instruments on commercial bank risks in China from 1998 to 2011. The interest rate has a positive effect on bank risk while the interest rate margin, the reserve requirement ratio and open market operation have a negative effect. Among the three monetary policy instruments, the reserve requirement ratio has the greatest effect on bank risk, the interest rate (the interest rate margin) the second largest and the open market operation the weakest. Their findings provide guidance to the monetary authority and regulatory authorities in monetary policy and banking regulation in China.

Monetary Policy Instruments and Bank Risks in China

2014 ◽  
pp. 518-531
Author(s):  
Zhongyuan Geng ◽  
Xue Zhai
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Policy Instruments ◽  
Bank Risk ◽  
Open Market ◽  
Reserve Requirement ◽  
Market Operation ◽  
Open Market Operation ◽  
The Interest Rate ◽  
Bank Risks

The authors use a panel data regression model to examine the effects of main monetary policy instruments on commercial bank risks in China from 1998 to 2011. The interest rate has a positive effect on bank risk while the interest rate margin, the reserve requirement ratio and open market operation have a negative effect. Among the three monetary policy instruments, the reserve requirement ratio has the greatest effect on bank risk, the interest rate (the interest rate margin) the second largest and the open market operation the weakest. Their findings provide guidance to the monetary authority and regulatory authorities in monetary policy and banking regulation in China.

scholarly journals ANALISIS KETERKAITAN INSTRUMEN KEBIJAKAN MONETER, DEFISIT ANGGARAN, DAN NERACA PEMBAYARAN INDONESIA TAHUN 2002 - 2017

2020 ◽  
Vol 2 (2) ◽  
pp. 36
Author(s):  
Orlandio Jeremy
Keyword(s):  
Monetary Policy ◽  
Money Supply ◽  
Policy Instruments ◽  
Secondary Data ◽  
Balance Of Payments ◽  
Open Market ◽  
Budget Deficits ◽  
Reserve Requirement ◽  
Market Operation ◽  
Open Market Operation

This study aims to analye the linkages of monetary policy instruments, budget deficit and balance of payments with VECM method. This study used secondary data from 2002 quarter I to 2017 quarter IV.            The result found one-way interaction between open market operation with Indonesian balance of payments. Money supply has two-way causality relationship with budget deficits and minimum reserve requirement. The exogenous variable which are BI rate and open market operation affected Indonesian’s balance of payments with  positive correlation, while the minimum reserve requierment significantly affect Indonesian’s balance of payments with negative correlation. Impulse response found shock of money supply respond to balance of payments positive in the fourth period.This result show that Indonesia’s balance of payments is a monetary phenomenon. So monetary policy instruments BI rate, minimum reserve requirement and open market operation can be used to maintain the stability of Indonesia’s balance of payment.

scholarly journals KETERKAITAN INSTRUMEN KEBIJAKAN MONETER DENGAN NERACA PEMBAYARAN DI INDONESIA

2020 ◽  
Vol 3 (1) ◽  
Author(s):  
Indra Maipita
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Policy Instruments ◽  
Balance Of Payments ◽  
Open Market ◽  
Close Link ◽  
Macroeconomic Variables ◽  
Policy Variable ◽  
Market Operation ◽  
Open Market Operation

This study aims to determine the monetary policy variable linkages with Indonesia's balance of payments. Using svar and IRF analysis found that the level of α = 0.05, variable monetary policy instruments such as open market operation (OPT), the minimum reserve requirement (GWM), and the discount rate (rDisk) has a significant relationship with the variable balance of payments (BOP) . In fact, all the macroeconomic variables also significantly affect the balance of payments variables, except the variable domestic interest rates. This means that there is a close link between monetary policy instruments with the balance of payments in Indonesia in the period of the study.

scholarly journals MONETARY POLICY IN AN ISLAMIC ECONOMICS

2021 ◽  
Vol 9 (5) ◽  
pp. 315-326
Author(s):  
Bismi Khalidin
Keyword(s):  
Monetary Policy ◽  
Discount Rate ◽  
General Concept ◽  
Economic Systems ◽  
Open Market ◽  
Holy Quran ◽  
Market Operation ◽  
The Holy Quran ◽  
Open Market Operation ◽  
The Stability

The primary aim of this paper is to elucidate the general concept of monetary policy under Islamic Economics. Not only does the stability of but also the growth of the economy in a country strongly depends upon monetary policy implemented. Such the phenomenon also prevails in Islamic Economics in which the term is also ruled by the Holy Quran and the Hadith of the Prophet. Moreover, the Prophet issued some regulations regarding monetary, such as to adopt Dinars and as the Islamic currencies. It is noted that, however, the thing distinguishing between Islamic Economics and other economic systems the variable of interest or usury, where either the Holy Quran or the Hadith clearly states that it is banned. Due to using interest as the yardstick, the conventional monetary instruments such as Open Market Operation, Discount Rate and the likes are not considered as the monetary instruments under Islamic Economics. Therefore, Instead of interest, Islamic Economics adopts Profit Loss Sharing (PLS) system, regarded as the important part of monetary policy. Moreover, Islamic Economics has also its specific monetary standard and instruments, which are far from interest or variables, such as certificates and others.

scholarly journals ANALYSIS OF CREDIT INSTRUMENTS FOR INCREASING FINANCIAL AND INVESTMENT POTENTIAL OF THE REGION

2020 ◽  
Vol 70 (4/2020) ◽  
pp. 161-173
Author(s):  
R. V. Badylevich ◽  
◽  
E. A. Verbinenko ◽  
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Banking Sector ◽  
Policy Instruments ◽  
The State ◽  
Russian Arctic ◽  
Open Market ◽  
Autonomous District ◽  
Murmansk Region ◽  
Nenets Autonomous

The article is devoted to analyzing credit instruments for increasing the financial and investment potential of the region. The place of credit instruments in the state monetary policy system is considered, and the influence of the monetary policy on regional economic processes is analyzed. Based on the analysis of the relevant research works, the thesis on different reactions of regions to significant decisions of monetary authorities while implementing the monetary policy is confirmed. Possibilities of differentiating application of the monetary policy instruments by territories in accordance with the development specifics of individual regions or their clusters are studied. It is concluded that some of the instruments (interest rates on operations of the Bank of Russia, mandatory reserve requirements, open market operations, refinancing of credit institutions) have a potential to adapt their use in the regional context. Separately, the article highlights and analyzes direct regional tools for enhancing credit activities, such as direct lending to priority areas and sectors of the economy by regional authorities, subsidizing credit rates for certain categories of borrowers, and creating regional credit organizations with governmenta participation. Based on the assessment of the principles of using the instruments to increase the financial and investment potential of the region, the article provides recommendations for choosing credit instruments for the regions of the Russian Arctic zone (Arkhangelsk region, Nenets Autonomous district, Yamalo-Nenets Autonomous district, Republic of Karelia, Komi Republic, Murmansk region, Krasnoyarsk territory, Republic of Sakha (Yakutia)). For this purpose, the features of building and functioning of the financial systems of the Russian Arctic regions, and the state and performance indicators of their banking sector were analyzed.

scholarly journals Monetary Policy and Financial Stability in the Nigerian Banking Industry

2019 ◽  
Vol 11 (1) ◽  
pp. 82
Author(s):  
Oparah Felix Chukwudi ◽  
James Tumba Henry
Keyword(s):  
Monetary Policy ◽  
Financial Stability ◽  
Banking Industry ◽  
Stability Index ◽  
Open Market ◽  
Long Run ◽  
Market Operation ◽  
The Impact ◽  
Nigerian Banking ◽  
Long Run Equilibrium

This study examined the impact of monetary policy on financial stability in the Nigerian banking industry for the period 2008Q1 to 2016Q2, using an error correction model. Banking industry financial stability index (BIFSI) was computed within the study and was used as a measure of financial stability in the Nigerian banking industry. The study discovered that the impact of monetary policy on financial stability in the Nigerian banking industry was weak. It also revealed a significant long run equilibrium relationship between monetary policy and financial stability in the Nigerian banking industry with a speed of adjustment to long run equilibrium of 66.54%. It was concluded that open market operation and exchange rate channels are more effective channels of transmitting monetary policy to financial stability in the banking industry, than interest rate channel.

Does Deliberation Matter in FOMC Monetary Policymaking? The Volcker Revolution of 1979

2008 ◽  
Vol 16 (4) ◽  
pp. 404-427 ◽  
Author(s):  
Andrew Bailey ◽  
Cheryl Schonhardt-Bailey
Keyword(s):  
Monetary Policy ◽  
Policy Decision ◽  
Decision Makers ◽  
Open Market ◽  
Credible Commitment ◽  
Federal Open Market Committee ◽  
Automated Content Analysis ◽  
High Inflation ◽  
The Face ◽  
Policy Shift

In monetary policy, decision makers seek to influence the expectations of agents in ways that can avoid making abrupt, dramatic, and unexpected decisions. Yet in October 1979, Chairman Paul Volcker led the Federal Reserve's Federal Open Market Committee (FOMC) unanimously to shift its course in managing U.S. monetary policy, which in turn eventually brought the era of high inflation to an end. Although some analysts argue that “the presence and influence of one individual”—namely, Volcker—is sufficient to explain the policy shift, this overlooks an important feature of monetary policymaking. FOMC chairmen—however, omnipotent they may appear—do not act alone. They require the agreement of other committee members, and in the 1979 revolution, the decision was unanimous. How, then, did Chairman Volcker manage to bring a previously divided committee to a consensus in October 1979, and moreover, how did he retain the support of the committee throughout the following year in the face of mounting political and economic pressure against the Fed? We use automated content analysis to examine the discourse of the FOMC (with this discourse recorded in the verbatim transcripts of meetings). In applying this methodology, we assess the force of the arguments used by Chairman Volcker and find that deliberation in the FOMC did indeed “matter” both in 1979 and 1980. Specifically, Volcker led his colleagues in coming to understand and apply the idea of credible commitment in U.S. monetary policymaking.

scholarly journals How deviations from FOMC’s monetary policy decisions from a benchmark monetary policy rule affect bank profitability: evidence from U.S. banks

2017 ◽  
Vol 9 (4) ◽  
pp. 354-371
Author(s):  
Nicholas Apergis ◽  
Chi Keung Marco Lau
Keyword(s):  
Monetary Policy ◽  
Policy Decision ◽  
Open Market ◽  
Policy Decisions ◽  
Policy Rule ◽  
Federal Open Market Committee ◽  
Data Set ◽  
Content Type ◽  
Monetary Policy Rule ◽  
Banking Institutions

Purpose This paper aims to provide fresh empirical evidence on how Federal Open Market Committee (FOMC) monetary policy decisions from a benchmark monetary policy rule affect the profitability of US banking institutions. Design/methodology/approach It thereby provides a link between the literature on central bank monetary policy implementation through monetary rules and banks’ profitability. It uses a novel data set from 11,894 US banks, spanning the period 1990 to 2013. Findings The empirical findings show that deviations of FOMC monetary policy decisions from a number of benchmark linear and non-linear monetary (Taylor type) rules exert a negative and statistically significant impact on banks’ profitability. Originality/value The results are expected to have substantial implications for the capacity of banking institutions to more readily interpret monetary policy information and accordingly to reshape and hedge their lending behaviour. This would make the monetary policy decision process less noisy and, thus, enhance their capability to attach the correct weight to this information.

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